CMA Final · Cost and Management Audit · Forensic Audit
In a forensic investigation of a suspected procurement fraud, an auditor takes a verified bank statement, invoices and vendor master data and preserves them in a way that records who handled them and when, so that they can be produced before a court. Which term describes this documented trail of custody?
The term is chain of custody. It is the documented record of who collected, held, moved and analysed evidence and when, ensuring the evidence stays untampered and is admissible in court during forensic proceedings.
- AChain of custodyCorrect
- BMateriality threshold
- CManagement representation
- DAnalytical review
Explanation
Chain of custody is the chronological documentation of who collected, held, transferred and analysed evidence, which preserves its admissibility. Materiality threshold relates to the size of misstatements. Management representation is a written assertion by management. Analytical review compares relationships in data and does not track evidence handling.
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